Taxation Ruling

TR 98/16W

Income tax: international transfer pricing - penalty tax guidelines

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FOI status:

Notice of Withdrawal

Taxation Ruling TR 98/16 is withdrawn with effect from today.

1. TR 98/16 does not apply to schemes entered into in relation to the 2000-01 or later income year(s).

2. Item 28 of A New Tax System (Tax Administration) Act (No. 2) 2000 inserted section 222AA into Part VII of the Income Tax Assessment Act 1936 (ITAA 1936) so that this Part ceased to apply in relation to schemes entered into in relation to the 2000-01 or later income year(s).

3. Furthermore, item 49 of the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 repealed subsection 284-145(2) of Schedule 1 to the Taxation Administration Act 1953. This subsection imposed scheme penalties arising from the application of Division 13 of the ITAA 1936 or the International Tax Agreements Act 1953 in respect of transfer pricing and income years commencing on or before 28 June 2013. That is, immediately prior to the enactment of Subdivisions 815-B, 815-C and 815-D of the Income Tax Assessment Act 1997 that replaced Division 13 of the ITAA 1936.

Commissioner of Taxation
5 May 2016

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Previously released in draft form as TR 95/D24

References

ATO references:
NO 1-6PB19E1

Related Rulings/Determinations:

IT 2311
IT 2517
TR 92/10
TR 92/11
TR 94/2
TR 94/3
TR 94/4
TR 94/5
TR 94/6
TR 94/7
TR 94/14
TR 98/11

Subject References:
advance pricing agreements
advance pricing arrangements
arm's length principle
culpability
culpability component
double tax agreements
hindrance
interest
penalty
per annum component
profit shifting
reasonably arguable position
reckless behaviour
recklessness in taxation matters
remission of penalties
scheme section
self assessment
tax avoidance
transfer pricing
voluntary disclosure

Legislative References:
ITAA36 51(1)
ITAA36 Pt III Div 13
ITAA36 136AD
ITAA36 136AE
ITAA36 170(1)
ITAA36 170(9B)
ITAA36 170(9C)
ITAA36 170AA
ITAA36 214A(8)
ITAA36 Pt VII
ITAA36 222C
ITAA36 222C(4)
ITAA36 former 223
ITAA36 224
ITAA36 225
ITAA36 225(1)(d)
ITAA36 225(1)(e)
ITAA36 225(2)
ITAA36 225(3)
ITAA36 226
ITAA36 226A
ITAA36 226C
ITAA36 226C(b)(i)
ITAA36 226C(b)(ii)
ITAA36 226D
ITAA36 226E
ITAA36 226F
ITAA36 226G
ITAA36 226H
ITAA36 226J
ITAA36 226K
ITAA36 226L
ITAA36 226M
ITAA36 226U
ITAA36 226ZA
ITAA36 227(3)
ITAA97 8-1
International Tax Agreements Act 1953 4(2)
Taxation Laws Amendment Act 1984
Taxation Laws Amendment (Self Assessment) Act 1992

Other References:
Explanatory Memorandum: Taxation Laws Amendment (Self Assessment) Bill 1992